PA$10-6($Algo$)($Supplement $10$A$)$ Recording Bond Issue, Interest Payments $($Straight$-$Line Amortization$),$ and Early Bond Retirement $[$LO $10-$S$1]$

On January $1,2021,$ Loop Raceway issued $630$ bonds, each with a face value of $$1,000,$ a stated interest rate of $5$ percent paid annually on December $31,$ and a maturity date of December $31,2023.$ On the issue date, the market interest rate was $6$ percent, so the total proceeds from the bond issue were $$613,148.$ Loop uses the straight$-$line bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Required:

Prepare a bond amortization schedule.

$2-5.$ Prepare the journal entries to record the bond issue, the interest payments on December $31,2021$ and $2022,$ the interest and face value payment on December $31,2023$ and the bond retirement. Assume the bonds are retired early on January $1,2023$ instead of at their maturity date of $\frac{12}{31}\frac{?}{2023},$ record the entry to retire the bonds early assuming a price of $98.$

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2$ to $5$

Prepare a bond amortization schedule.

$\backslash$table$[[\backslash$table$[[$Period$],[$Ended$]],$Changes During the Period,Ending Bond Liability Balances$],[\backslash$table$[[$Cash$],[$Paid$]],\backslash$table$[[$Discount$],[$Amortized$]],\backslash$table$[[$Interest$],[$Expense$]],\backslash$table$[[$Bonds$],[$Payable$]],\backslash$table$[[$Discount on$],[$Bonds$],[$Payable$]],,],[\frac{01}{01}\frac{?}{21},,,,,,$$$,0],[\frac{12}{31}\frac{?}{21},,,5,,$E$,,0],[\frac{12}{31}\frac{?}{22},,,0,$hat$(2),$F$,,0],[\frac{12}{31}\frac{?}{23},,,0,07,1,,0]]$